Influence of Management Style on Creative Firms

Contents Contents2 Introduction3 partitioning virtuoso4 perplexity modal values in originative unfalterings4 Section Two6 Benefits and reasons of having a suitable guidance appearance6 Section Three8 Alternatives and comparisons8 purpose10 extension ph unitary Page11 Introduction By the definition from the book written by Howkins (2001), imaginative prudence includes advertising, architecture, art, crafts, design, work, film, music, performing art, publishing, research and development, software, toys and games, television and radio, and video games.Nowadays, notional industries check become an significant economic routine in many real countries, for example, America, United Kingdom, Canada, Japan and Hong Kong. Take United Kingdom as an example, surgical incision for culture, media and sport (DCMS, 2010, p. 6-8) states that the productive industries contri stilled 5. 6% to Gross Value Added (GVA) in 2008, excluding Crafts. In addition, DCMS also lists that inventive industries provided 2. million jobs in the summer quarter of 2010 in Great Britain. pull through but not least, original industries exported 17. 3 gazillion services in 2008. Based on the statistics in a higher place, it shows that fictive industries lose a great contribution in British economy. Since inventive industries are change state more and more tiny in a mature economy, it is fascinating to figure out what essential factors can lam creative firms to be successful.As a result, I decided to evaluate the factors that influence the forethought call for a creative firm since I am interested in business prudence and it would benefit my future studies in university This essay is in the first place concentrated on the guidance elan using in creative industries, the benefits of the counseling dahs, and evaluating the connection between the successes and particular worry course. This essay is dissever into three roles. Firstly, the management tyles using in cr eative industries will be stated and discussed, the aim of this department is to find out the management modal values in modern economy and hence, can be studied deeply in the section two. In section two, the benefits and the reasons of using a particular management call in the creative industries will be evaluated. The mind of this section is to work out the influence of management style on creative firms. Finally, in section three, alternatives of management styles and comparisons will be commented. In this section, unlike management styles can be compared in that locationfore the pros and cons can be accounted.Section One perplexity styles in creative firms In hunting lodge to analyze the role of management in a creative firm, I am personnel casualty to provide several management styles in some famous creative firms. By understanding the intermediates of the management styles, the splendor of management for a creative firm can be figured out. In addition, we are dismissa l to go through some successful creative firms in the creative activity for evaluating the elements of their successes, and try to make a connection between the achievements and the critical management styles.Media is the first example I am going to discuss. Howkins (2001) mentions that, media belong to the miscellany of creative economy. So the management style using in a media keep family does reflect the function of management style in creative firms. Bilton (2007, pp. 67-69) states that in 2000, thither was a huge change of management style at the British Broadcasting Corporation (BBC). Before the succession act by Greg Dyke, there was a straight management style in the BBC by the pervious director general, John Birt.Bilton (2007) claims the management of Birt as gray-haired fashion since the grammatical construction in the BBC was a large organization structure before 2000, which means that the management structure within the BBC was a tall hierarchy. Decision-making wa s from the top of the board of directors down to the employees. In addition, Bilton states that there was a strategical centralization inside the BBC. It means the board of directors had the absolute power in the BBC. Based on the example provided by Bilton, it is not difficult to entrance that the management style in the BBC was autocratic management.After the succession, Greg became the director general and there was a huge change in management style at the BBC. Bilton claims that as a in the raw management style for the BBC. Describing by Bilton, Greg was a program-maker and the first thing he did after(prenominal) his arrival was making the BBC a more inspired and interesting place to work. All the employees were encouraged to keep back mod reports for perfecting the BBC. Under the entirely stark naked management style, the employees were more willing to contribute their ideas to the senior managers.Bilton comments the Gregs management style brought the BBC a new workin g culture and made the BBC the more or less creative origination in the world. An early(a) example I am going to give is a software firm, Google. Larry Page and Sergey Brin founded Google Company in 1998. It has become ane of the most successful software companies in the world by having more than 25,000 employees and cute at more than 150 billion US dollars (Jackson, Schuler and Werner, 2009, p. 3). Jackson, Schuler and Werner mention in their book that the management style, especially valet resource management, appears as a critical factor in the success of Google.They show that the managers in Google passing respect the employees and provide as much as they could to the employees in order to set about their creativities. One of the evidence is that there is only five percentage voluntary turn everyplace rate of Google employees per year (Jackson, Schuler and Werner, 2009) also, Google was the top five in the ranking of the top 100 best companies to work for in 2011 (CNN, 20 11). Last but not least, Jackson, Schuler and Werner state that there are more than 1 million people apply to work at Google every year.All of the above show that the employees in Google have a great satisfaction. Jackson, Schuler and Werner show the importance of human resource management in Google. For example, they suggest that treating the employees as alike(p) as the company wants the employees to treat their customers is the philosophy of Google. They also claim that there is a strong connection between the business strategy and managing human resource in Google. By the examples provided above, it is not difficult to find that the management styles applied in creative industries have a direct tint on the performances of the companies.As a result, having an appropriate management style in a creative firm is a critical factor for forgeting the company to be successful. Section Two Benefits and reasons of having a suitable management style It is obvious that a suitable managem ent style is a critical factor for leading a creative firm to be successful. In this section, the benefits of having an appropriate management style and the reasons of applying a particular management style will be discussed. Based on the examples given in the in the end section, the management styles applying in creative firms can be concluded as elected and even laissez faire.Since the employees in the BBC and Google are both highly respected in addition, the senior managers currently accept their opinions and ideas (Bilton, 2001 Jackson, Schuler and Werner, 2009). Therefore, the management styles in creative firms should be based on the satisfaction of employees because the creativities and ideas are the most expensive resource in creative economy Florida (2002, p. xiii) has a similar idea that the creativeness from human is the critical supply to the creative economy. Bamfield (2006, pp. 52-154) suggests that the function of management in creative firms is to stimulate the creativities and encourage employees to generate new ideas. Since creativity is a force for making a creative firm to be successful, therefore Bamfield also claims that the managers should provide a full support to employees in order to fulfill their satisfactions. Jackson, Schuler and Werner (2009) also support the similar idea, which the founders of Google concentrated on giving the employees everything they needed to create and innovate.Foote (2001) emphasize in his book that it is important to keep employees in an in orb, open and friendly working environment. This can stimulate their creativity and ideas development. And he states that the manager cannot be too emotional with the employees, otherwise, it dexterity affect the decision-making. Therefore, we can conclude that employees-based management style can have a positive impact on stimulating creativities, encouraging contributions, and generating new ideas and innovations. At the same time, the manager cannot be too emot ional, which might lead to wrong decision-making.Comparing with the old-fashion management style, tall hierarchy, power centralization, and limits of decision making from subordinates, the new-management style (freedom, good communication between workers and managers) is more suitable in a creative industry. Davila, Epstein and Shelton (2007) show that the successful development of younger electrical firms after World War 2 in Britain was benefited by used a more open mind management style and stimulated the innovations. On the other hand, older firms could not be successful because the old fashion of management style.This is because the old-fashion management style inhibits the innovative development. To conclude, an old-fashion management style (autocratic) is not suitable for creative economy because not only it contributes nothing to creations and innovations, but also worse it restrains the expansions of new ideas. Thus, a creative industry is hardly successful with an old-fas hion management style. Last but not least, the satisfaction of jab is also a consideration of whether it is a suitable management style for a creative firm or not.Since Singh (2001) claims that a wangleling style of management will lead the employees being passive. In order to control those passive employees, a more constricted control is needed. In this controvert circle, a high industry turnover, low-morale, arguments or disagreements, low efficiency and sad sense of belonging to the company will be occurred. Singh gives an example that the managers from Mainland mainland China applied an authoritarian management style and lead to the negative impacts mentioned above.In a conclusion, an unsuitable management style in a creative firm will conduct a huge negative impact to the industries. Section Three Alternatives and comparisons Management style plays such an important role in creative firms, how to pick a suitable management style should be the most difficult question to the senior managers in those creative industries. The entropy given above is a simple guideline to pick a appropriate management style since it mentions the management styles using in contrasting kind of creative industries, some of them are famous all over the world.In addition, it provides a wide range of benefits of different management styles and the conditions of using them. Actually, the management style that is suitable for a creative firm can be chiefly divided into two big groups, one of them is democratic, and another one is individuation. These two management styles are quite similar to each other by the information provided in section one and two. The huge loss between these two is that democratic is described as more tructural and formal on the other hand, individuality contains more freedom for workers and the structure of the company is more like an individual work force. Bilton (2007, p. 67) states that the management style in creative industries is similar to a no n-management management style, which means the managers are most invisible in the management however, the employees can still contribute a lot to the creative firm. The managers would not set the deadline of the products and the employees can finish their working a relaxing and creative way.Therefore, the products can be created in a high quality. Take Google as an example, the employees in Google are encouraged to do their creative pursuits and Google will even provide 20 percent of the week to them (Jackson, Schuler and Werner, 2009). Compared with Laissez-faire, the management style inside Google is more like a democratic management. It seems that the founders of Google treat the employees as a kind of resources more than contributors to the company. The reason of claiming that is cod to the strategic approach to managing the employees.It might seem like Google already has had a plan to deal with the employees. On the other hand, the real example of Laissez-faire is hardly fou nd. It might be because the over freedom of management style cannot give the board of directors confidence of making profits since the manufacturing of innovation and new creation is not secured under Laissez-faire. In addition, it is tough to get the investments from the investment banks or investors because the managers are not able to give a sanction of making a brisk sale product. As a result, Laissez-faire is hardly appearing in the modern creative economy.Stewart (2011) also suggests this idea and she gives a significant example of the failure of Laissez-faire in her journal. Conclusion To conclude, the management style does play an important role in creative economy and it is also a critical factor that can lead the industries to be successful or failing. By the examples given in section one, two management styles are mainly applied in creative economy, which is democratic and Laissez-faire. The reasons can be found in section two, one significant reason is that these two m anagement styles can provide employees a better orking place that can stimulate their creativities and generating new ideas. In addition, a new and suitable management style can prevent the labor turnover since employees satifactions are fulfilled also it can avoid the obstacle of creating new ideas. Finally, in the modern creative economy, democratic management is mainly used. It is because the creation of products or services is more secured when comparing with Laissez-faire. Also, democratic management can give the board of directors more confidence and the investment banks as well.Therefore the creative industries can more easily apply the investment from the investors. Management style is an essential part on developing creative economy and has a significant impact on it. Reference Page Bilton, C. (2007) Management And Creativity From originative Industries to Creative Management, Oxford Blackwell Publishing Ltd Bamfield, P. (2006) Research And Development in the Chemical And Pharmaceutical Industry, Weinheim Wiley-VCH Verlag GmbH & Co. Davila T. , Epstein M. J. , Shelton R. (2007), The Creative Enterprise Execution, Westport Praeger Publisher Foote C.S. (2001), The Creative art Guide to Running a Graphic Design Business, New York Creative Business newsletter. Jackson, S. E. , Schuler, R. S. , Werner, S. (2009), Managing Human Resources, Mason South-Western, Cengage Learning Singh, A. (2001), Creative Systems in geomorphologic and Construction Engineering, Rotterdam A. A. Balkema Howkins, J. (2001), The Creative Economy How People Make silver From Ideas, Penguin CNN Money (2011), 100 Best Companies to work for, online Available at http//money. nn. com/magazines/fortune/bestcompanies/2011/full_list/ Accessed 13 May 2012 DCMS (2010), Creative Industries Economic Estimates, London, UK Department of Culture, Media and Sport, retrieved 9 December 2010 Stewart, H. (2011), Laissez-faire has failed us. Now were getting panicky intervention. Guardian Observer , online 27 November 2011. Available at http//www. guardian. co. uk/business/2011/nov/27/laissez-faire-failed-panicky-intervention Accessed 14 May 2012